Question

Watch "The Economics of Ideas: COVID-19 Vaccine? " video before answering questions below.  Answer in space provided and then submit.

1. Research on the internet and name at least one example of a prize being offered (or planned to be offered) to find a vaccine or treatment for COVID-19.

2. Who might be incentivized by a prize that would not be by a patent or a subsidy? Why?

3. What are the pros and cons of using prizes to find a COVID-19 vaccine?

Answer 1

(1) A huge money prize for any firm that builds up a fruitful Covid antibody. Focusing on a generous monetary prize for an effective Covid antibody will support certainty among firms that their examination endeavors will be compensated.

(2) The most serious issue with licenses and endowment is that this prompts the limitation on the spread of groundbreaking thoughts. Licenses could keep different trend-setters from expanding on the head of smart thoughts. Thus here prizes can resolve the strain among advancement and moderateness by achieving both. Enormous firms and drug organizations can be boosted by a value that will help certainty among firms as their exploration endeavors will be compensated.

(3) The masters of utilizing prizes are:-

# It helps in boosting up the certainty among the organizations because of which they work considerably harder on their explores.

# Prizing likewise doesn't frustrate the spread of thoughts. As on account of licenses, the spread of thoughts is confined.

The cons of utilizing prizes are:-

# It turns out to be truly hard to ascertain the am,ount which must be offered to the organizations for the antibody this is because we can't figure that at what value the immunization would be sold.

# Due to valuing, there would be an administrative tension on the organizations that the immunization must be given to people in general at low or zero expense. This may likewise prompt a fall in the resolve of the organizations. This is because they realize that they can make a benefit only once by winning the Cash prize. Bu, they would win more if they would get patent of their immunization.

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